Earthlink 2006 Annual Report Download - page 103

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19. Quarterly Financial Data (Unaudited)
The following table sets forth certain unaudited quarterly consolidated financial data for the eight quarters in the period ended
December 31, 2006. In the opinion of the Company’s management, this unaudited information has been prepared on the same basis as the
audited consolidated financial statements and includes all material adjustments (consisting of normal recurring accruals and adjustments)
necessary to present fairly the quarterly unaudited financial information. The operating results for any quarter are not necessarily indicative of
results for any future period.
(1) Because of the method used in calculating per share data, the quarterly net income (loss) per share amounts will not necessarily add to the net income per share computed for
the year.
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A.
Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we carried out an evaluation,
with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures (as defined under Rule 13a-
15(e) under the Exchange Act) as of the end of the period covered by this report.
Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are
effective to ensure that information required to be disclosed in the reports that are filed or submitted under the Exchange Act, is recorded,
processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that
such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure.
102
Three Months Ended
Mar. 31,
June 30,
Sept. 30,
Dec. 31,
Mar. 31,
June 30,
Sept. 30,
Dec. 31,
2005
2005
2005
2005
2006
2006
2006
2006
(unaudited)
(in thousands, except per share data)
Revenues
$
334,740
$
325,688
$
316,996
$
312,648
$
309,712
$
332,096
$
331,309
$
328,150
Operating costs and expenses
297,940
277,835
273,968
275,833
289,983
304,864
311,683
319,095
Income from operations
36,800
47,853
43,028
36,815
19,729
27,232
19,626
9,055
Gain (loss) on investments in other
companies, net
(915
)
3,352
—
440
—
352
25
—
Net losses of equity affiliate
(257
)
(2,085
)
(4,592
)
(8,674
)
(7,591
)
(15,351
)
(26,174
)
(35,666
)
Interest income and other, net
2,875
2,936
3,400
4,280
4,216
4,334
3,272
2,814
Income (loss) before income taxes
38,503
52,056
41,836
32,861
16,354
16,567
(3,251
)
(23,797
)
Provision (benefit) for income taxes
5,156
8,208
5,401
3,711
—
—
(
69
)
955
Net income (loss)
$
33,347
$
43,848
$
36,435
$
29,150
$
16,354
$
16,567
$
(3,182
)
$
(24,752
)
Basic net income (loss) per share (1)
$
0.23
$
0.32
$
0.28
$
0.22
$
0.12
$
0.12
$
(0.02
)
$
(0.20
)
Diluted net income (loss) per share (1)
$
0.22
$
0.31
$
0.27
$
0.22
$
0.12
$
0.12
$
(0.02
)
$
(0.20
)
Basic weighted average common shares
outstanding
146,594
138,303
132,444
131,008
131,514
132,779
128,321
122,654
Diluted weighted average common shares
outstanding
149,425
140,867
134,709
134,687
133,489
134,897
128,321
122,654